In an effort to prevent fraud, the IRS is now requiring that the government copies of Forms W-2 & W-3 be filed by January 31st with the Social Security Administration. This new deadline will also apply to 1099-Misc forms that contain compensation reported in box 7. In previous years, the recipient copies had to be distributed by the end of January but the filings with SSA & the IRS were extended to the end of February for paper copies and March if filing electronically.
Business owners can prepare now by taking the following steps:
- Verify that all employee records are accurate and up-to-date.
- Review bank reconciliations for old, outstanding payroll checks that may need voided.
- Gather current addresses and social security numbers for any individuals that were paid more than $600 during 2016 for work performed for your business.
Taking these simple steps now will help to make your year-end less chaotic for everyone involved.
~ Nancy VanHorn, CPP
Assistant Accounting Manager
